

Business Administration
Test Bank
Course Introduction
Business Administration is a comprehensive course that introduces students to the fundamental concepts and practices involved in managing and operating a business. Covering key areas such as organizational structure, management principles, marketing, finance, human resources, and strategic planning, the course seeks to equip students with practical skills and analytical tools necessary for effective decision-making in a dynamic business environment. Emphasis is placed on real-world case studies and problem-solving, preparing students for leadership roles and entrepreneurial ventures across diverse industries.
Recommended Textbook
Human Resource Management 15th Edition by Robert
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Page 2
L. Mathis

Chapter 1: Human Resource Management in Organizations
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) The Sarbanes-Oxley Act requires companies to establish ethics codes, develop employee complaint systems, and have antiretaliation policies for employees who act as whistle blowers to identify wrongful actions.
A)True
B)False Answer: True
Q2) Global Professional in Human Resource (GPHR), a human resource certification, is sponsored by the American Society for Training and Development. A)True
B)False Answer: False
Q3) Even if an organization does not have a history in which people have shared experiences for years, the organizational culture will stabilize. A)True
B)False Answer: False
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Chapter 2: Human Resources Strategy and Planning
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Sample Questions
Q1) Short-range forecasts focus on the immediate HR needs of an organization.
A)True
B)False
Answer: True
Q2) Which of the following is a mathematical method of HR forecasting?
A) The rule of thumb
B) Estimates
C) Staffing ratios
D) Nominal groups ?
Answer: C
Q3) The balanced scorecard is a framework organizations use to report on a diverse set of performance measures.
A)True
B)False
Answer: True
Q4) Define strategic planning.
Answer: Strategic planning is the process of defining a strategy, or direction, and making decisions on how to allocate the resources of the organization to pursue this strategy.
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Chapter 3: Equal Employment Opportunity
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Sample Questions
Q1) A quid pro quo harassment exists when an individual's work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions.
A)True
B)False
Answer: False
Q2) Explain the concept of status-blind employment decisions.
Answer: Status blind is a concept that emphasizes that differences among people should be ignored and everyone should be treated equally.
Q3) The Americans with Disabilities Act is enforced by the_____.
A) Department of Labor
B) National Labor Relations Board
C) Office of Federal Contract Compliance Programs
D) Equal Employment Opportunity Commission
Answer: D
Q4) Define bona fide occupational qualification.
Answer: A bona fide occupational qualification provides a legitimate reason why an employer can exclude persons on otherwise illegal bases of consideration.
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Chapter 4: Workforce, Jobs, and Job Analysis
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Sample Questions
Q1) Identifying jobs and methodologies is a subtask of _____.
A) developing job descriptions
B) conducting the job analysis
C) planning the job analysis
D) preparing for and introducing the job analysis
Q2) Job design refers to organizing tasks, duties, responsibilities, and other elements into a productive unit of work.
A)True
B)False
Q3) _____ is the impact the job has on other people.
A) Autonomy
B) Skill variety
C) Task identity
D) Task significance
Q4) A(n) _____ is a larger work segment composed of several tasks that are performed by an individual.
A) duty
B) obligation
C) job
D) responsibility
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Chapter 5: Individual/Organization Relations and Retention
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Sample Questions
Q1) What are the three major factors that affect individual performance in organizations?
Q2) A software firm plans to reduce the number of talented designers in its workforce who leave their jobs. In this case, the firm seeks to focus on _____ turnover among the designers.
A) uncontrollable
B) positive
C) functional
D) voluntary
Q3) Employee productivity is a tangible aspect of psychological contracts.
A)True
B)False
Q4) One of the determinants of employees' willingness to exert effort is the degree to which they value the rewards offered by an organization.
A)True
B)False
Q5) Why do top performers choose to stay with the same company?
Q6) How hasthe psychological contract between employers and employees changed over time?
Page 7
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Chapter 6: Recruiting and Labor Markets
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Sample Questions
Q1) Paul is the director of recruitment at Times Clockworks. After running a thorough study of their employees' backgrounds, Paul finds that Times Clockworks has disparate impact in the proportion of Hispanic employees compared to the proportion of Hispanics in its labor market. Which of the following steps should Paul take to solve the problem most efficiently?
A) Lower the job specifications for Hispanic applicants
B) Begin advertising for job openings on the local Spanish radio station
C) Continue its current recruiting practices because only organizations with Affirmative Action Plans are required to meet EEO guidelines
D) Freeze the hiring process until qualified Hispanics apply for the position
Q2) Yield ratio is a measure of the quality of job applicants.
A)True
B)False
Q3) Solange Allure Inc., a cosmetics company, is moving its operations from Bogalusa, Louisiana, to Seattle, Washington. Solange Allure will be changing its occupational labor market.
A)True
B)False
Q4) Describe some of the common external recruiting sources.
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Chapter 7: Selecting Human Resources
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Sample Questions
Q1) It is legal for an employer to check a person's Social Security number, motor vehicle records, and military records when performing a background check on an applicant.
A)True
B)False
Q2) Identify the sources of background information for job applicants.
Q3) In the context of selection and placement, what is meant by the term "mismatch"?
Q4) A new Gulf Coast casino plans to hire over 1,000 employees for its new resort. The casino's HR department requires applicants to complete an online questionnaire which is later analyzed using computer software and only those applicants who have previously worked in hotels and casinos are considered eligible for the next step in the hiring process. This is an example of a_____.
A) compensatory approach to selection
B) realistic job preview
C) preemployment screening process
D) multiple hurdles approach to selection
Q5) Why does inter-rater reliability become important during selection interviewing?
Q6) Why are medical examinations required in the selection process?
Q7) What purposes do application forms serve?
Q8) What are the key competencies for successful global employees?
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Chapter 8: Training Human Resources
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Sample Questions
Q1) The most elementary way in which people learn is _____, which involves copying someone else's behavior.
A) behavioral modification
B) behavioral modeling
C) cognitive practice
D) positive reinforcement
Q2) "Soft" skills are critical in many instances in a business environment and can be taught.
A)True
B)False
Q3) Attitude survey data are typically used in _____ analysis of training needs.
A) individual
B) organizational
C) task
D) job
Q4) Behavioral modelingoccurs when a person performs all the practice at once.
A)True
B)False
Q5) How can job or task analysis help assess training needs?
Q6) Why does informal training occur?
Page 10
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Chapter 9: Talent, Careers, and Development
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Sample Questions
Q1) Talent management is growing in importance because it is concerned with the attraction, development, and retention of Human Resources.
A)True
B)False
Q2) How do off-the-job techniques help individuals? Discuss the advantages and disadvantages of sabbaticals.
Q3) Psychological testing is appropriate only when the testing and feedback processes are closely handled by a qualified professional.
A)True
B)False
Q4) Job rotation tends to be an expensive form of employee development because it takes time for employees to become familiar with their new units.
A)True
B)False
Q5) Job loss as a career transition has been most associated with downsizing, mergers, and acquisitions.
A)True B)False
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Chapter 10: Performance Management and Appraisal
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Sample Questions
Q1) Which of the following is behavior-based information?
A) Cost reduction
B) Effective communication
C) Improved quality
D) Timeliness of response
Q2) A disadvantage of the outsider rating approach is that outsiders may not know the important demands within the work group or organization.
A)True
B)False
Q3) The administrative role of performance appraisals often creates stress for managers doing the appraisals and the employees being evaluated, because the rater is placed in the role of judge.
A)True
B)False
Q4) When a key part of performance management, the performance appraisal, is used to punish employees, performance management is less effective.
A)True
B)False
Q5) Define behaviorally anchored rating scales.
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Chapter 11: Total Rewards and Compensation
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Sample Questions
Q1) Describe the different methods of job evaluation.
Q2) Market banding groups jobs into pay grades based on similar market survey amounts.
A)True
B)False
Q3) What is a lump-sum increase?
Q4) Average annual salary increase = _____.
A) the average salary increase of all employees divided by the number of full-time equivalents
B) the number of full-time equivalents divided by the total salary increase of all employees
C) the total salary increase of all employees divided by the number of full-time equivalents
D) the number of full-time equivalents divided by the average salary increase of all employees
Q5) Which of the following is classified as an input in the equity theory?
A) Job security
B) Praise
C) Loyalty
D) Recognition
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Chapter 12: Variable Pay and Executive Compensation
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Sample Questions
Q1) Describe the different types of work unit/team incentives.
Q2) In a stock option plan, if the market price of the stock exceeds the exercise price, _____.
A) employees can then exercise the option and buy the stock
B) employees have to purchase the stock at the new price
C) employees have to forfeit their claims to the company shares
D) employees will make a loss through stock ownership
Q3) The "clawback" provision in the _____ allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.
A) Sarbanes-Oxley Act
B) Dodds-Frank Act
C) Lilly Ledbetter Fair Pay Act
D) Walsh-Healy Public Contracts Act
Q4) List the three basic assumptions that the philosophical foundation of variable pay plans rest on.
Q5) Describe the different types of sales compensation plans.
Q6) The focus of gainsharing is to increase "discretionary efforts."
A)True
B)False

Page 14
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Chapter 13: Managing Employee Benefits
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Sample Questions
Q1) According to the Patient Protection and Affordable Care Act, enrollment in health coverage is mandatory for every citizen.
A)True
B)False
Q2) Meredith, the general manager of an IT firm, is planning to introduce certain new strategies to control and reduce the health care benefit costs to her company. Which of the following is most likely to be included in her list of strategies?
A) Decreasing copayments
B) Eliminating high-deductible plans
C) Switching to consumer-driven health plans
D) Avoiding managed care
Q3) George, a travel agent, shares some of his unused vacation time with his colleague Sam. Is such an arrangement legal in the U.S.?
Q4) In companies that provide defined benefit plans, if the funding is inadequate to pay the benefits promised, the employees must make up the shortfall.
A)True
B)False
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15

Chapter 14: Risk Management and Worker Protection
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Sample Questions
Q1) _____ typically provide the funds necessary for workers' compensation in a privately owned company.
A) Employers
B) Employees
C) Federal government agents
D) State governments
Q2) Recovering substance abusers are not considered disabled under the ADA.
A)True
B)False
Q3) Which of the following is typically a part of the organizational approach to safety management?
A) Applying ergonomic principles
B) Creating safety policies
C) Designing work settings and equipment
D) Providing employee safety training
Q4) Which of the following is a part of security audits?
A) Identification of mentally-ill employees
B) Identification of the whistle-blowers in a company
C) Validation of employee screening and selection
D) Review of disaster plans of an organization
Page 16
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Chapter 15: Employee Rights and Responsibilities
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Sample Questions
Q1) Which of the following statements is true of employee handbooks?
A) The courts use employee handbooks against employers in lawsuits by charging a broken "implied" contract.
B) Employee handbooks should preferably be generalized so that the content matches the general policies followed in a specific industry.
C) Employee handbooks should not include content that would require constant revision because revision can be very expensive.
D) Employee handbooks should always be written in a formal legalistic fashion to ensure its effectiveness.
Q2) For separation agreements to be legally enforceable, the consideration is usually additional benefits that are not part of a normal termination package.
A)True
B)False
Q3) The right of U.S. citizens to be protected from search and seizure does not apply to employees searched at work by representatives of their private employers.
A)True
B)False
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Chapter 16: Union/Management Relations
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Sample Questions
Q1) Providing incentives to employees to dissuade them from organizing is a popular legal strategy used by employers to prevent unionization.
A)True
B)False
Q2) The Taft-Hartley Act allows the U.S. Senate to declare that a strike presents a national emergency.
A)True
B)False
Q3) Describe two global labor organizations.
Q4) In 1936 in the United States, airlines and their employees were added to those covered by the_____.
A) Wagner Act
B) Taft-Hartley Act
C) Airline Employment Act
D) Railway Labor Act
Q5) The process of conciliation is intended to resolve collective bargaining impasses by proposing potential solutions to the involved parties.
A)True
B)False
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